Kudej Printing Uses Two Measures of Activity, Press Runs and Book

question 84

Multiple Choice

Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.
-The wages and salaries in the flexible budget for May would be closest to:

• A)$185,030
• B)$186,280
• C)$188,370
• D)$187,240

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Definitions:

Firm's Product

A firm's product is the good or service produced or offered by a business entity.

Job Search

describes the process individuals undertake to find a new job or employment opportunity.

Matching Workers

The process of aligning the skills and preferences of job-seekers with the needs and demands of employers.

Structural Unemployment

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.